II. Following are the 2017 fourth quarter transactions for Pine Products, Inc So
ID: 2343131 • Letter: I
Question
II. Following are the 2017 fourth quarter transactions for Pine Products, Inc Sold pine products for $20,000 at Christmas bazaars. Received $1,000 in cash. The remaining sales were charged to Visa credit cards, Visa charges Pine Products a 3% fee for using its card. f Cosh looo a. Irterest expenca 2ooo Visa wrote off $500 from the bazaar sales that had been charged to stolen credit cards b. U. Purchased a new band saw on October 1, 201 7 for $15,000 cash and a si 5,000, 8% note payable due 6/30/18/The band saw has a six-year useful life. c. January 1, 2018 physical count showed S1,500 of supplies on hand. The balance at September 30, 2017 was $1,000 and $2,000 of supplies were purchased during the fourth quarter.plies 20 Supply. Is e. Received the payment from Visa for fourth quarter sales. f. Prepaid $7,500 for December, January and February rent on the shop. Cosh Prepaid income taxes of $1,000. The tax rate is 30%. g. Required: 1. 2. Prepare the journal entries page 6. If no journal entry is necessary write N/A. Prepare the adiusting iournal entries necessary for each transaction for the quarter ending 12/31/17 in the space provided on page 7. If no journal entry is necessary write N/A. necessary to record each transaction in the space provided onExplanation / Answer
Req 1. Journal entries S.no. Accounts title and explanations Debit $ Credit $ a. Cash account Dr. 1000 Card receivable Dr. 18430 Card expenses Dr. (19000*3%) 570 Sales revenue 20000 b. No entry c. Equipment Dr. 30000 Cash account 15000 Notes payable 15000 d. Supplies Account Dr. 2000 Accounts payable 2000 e. Cash account Dr. 18430 Card receivable 18430 f. Prepaid rent Dr. 7500 Cash account 7500 g. Income tax account Dr. 1000 Cash account 1000 Req 2. Adjusting entries S.no. Accounts title and explanations Debit $ Credit $ a. NA b. NA c. Depreciation Dr. (30000*1/6*3/12) 1250 Accumulated depreciation 1250 Interest expense Dr. 300 Interest payable (15000*8%*3/12) 300 d. Supplies expense Dr. 1500 Supplies account (1000+2000-1500) 1500 e. NA f. Rent expenses account Dr. 2500 Prepaid rent account 2500 g. NA